Cochlear sinks 40% and sheds $4b on ‘staggering’ earnings downgrade
CEO Dig Howitt has conceded the ear implant manufacturer could be facing years of pain due to an ‘extreme’ decline in consumer sentiment, particularly in the US.
At a time when local companies are emerging almost daily with war-related guidance downgrades, Cochlear stunned investors on Wednesday with a setback that went far beyond the conflict in the Middle East.
The hearing implant manufacturer saw its shares crater more than 40% to its lowest price in more than a decade, shedding more than $4 billion from its market capitalisation.
The decline came after it slashed its FY26 underlying profit guidance by 23.5% at the midpoint. Cochlear is now guiding for underlying net profit of $290 million to $330 million. It previously said it was tracking the lower end of its original $435-460 million guidance range.
The company articulated a long list of factors driving the downgrade, one of which was the risk of order cancellation and delivery delays in the Middle East.
